Best Execution Survey Finds DMA Set to Increase

A European best execution survey conducted by Edhec-Risk Advisory has revealed a major change in the relationship between asset managers and their intermediaries. More than 60 per cent of the survey’s respondents already have direct market access (DMA), although volume traded directly only represents 7.5 per cent. More than 66 per cent of respondents intend to increase their DMA volume over the coming years, while 22 per cent expect DMA to represent up to 50 per cent of their trading volume. Even more important for broker-dealers is the increasing need for transparency and control over the execution process, said Edhec-Risk Advisory. The survey shows that an increase in transparency is a key element for 40 per cent of its respondents. Up to 50 per cent are willing to implement more stringent controls over trade execution, while 10 per cent are satisfied with the current status of the relationship. The survey also found that 46 per cent of respondents have already implemented an infrastructure for controlling best execution, with 28 per cent intending to do so in 2004-2005.


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